The Rise and Fall of AFRM - The Fed, Economics, other factors
My prediction is consistent with recent performance, which is to say I see it falling and I predict further downside. What I see since their earnings announcement is a bounce that took price up to and just above the 50% retracement (on Thursday afternoon) and another bounce to 61.8% (this morning, from Friday's low.) Draw your own Fibs and see what you find...
The levels marked on this chart are illustrative of my question, will price rise again to levels I consider out of range and inconsistent with recent performance, or will the price fall to below $20 where buyers are likely to find AFRM a "bargain" hard to resist.
AFRM is affected by interest rates - or appears to be directly impacted by Fed rate announcements. The economics I propose are these - people are eventually going to pull back on spending, with prices of all necessities hitting all-time highs. You can look at this two ways; will people be more likely to use AFRM to pay over time, or will people slow their spending to the degree that AFRM will not be used by people who already are struggling to pay the bills they have today?
Other factors impacting AFRM's price include, days to cover shorts (only four days of avg volume), negative stats on returns and margins, etc. Yahoo Finance has all of this for you.
Shares Short (4/30/2024) 4 29.98M
Short Ratio (4/30/2024) 4 6.08
Short % of Float (4/30/2024) 4 14.41%
Short % of Shares Outstanding (4/30/2024) 4 9.72%
Shares Short (prior month 3/28/2024) 4 29.94M
The likelihood of a short squeeze rally is slim. And I'm buying PUT contracts in anticipation of further downside. As always, arguments to the contrary are welcome. Almost any and all feedback is helpful. Tell me, what do you think?
The levels marked on this chart are illustrative of my question, will price rise again to levels I consider out of range and inconsistent with recent performance, or will the price fall to below $20 where buyers are likely to find AFRM a "bargain" hard to resist.
AFRM is affected by interest rates - or appears to be directly impacted by Fed rate announcements. The economics I propose are these - people are eventually going to pull back on spending, with prices of all necessities hitting all-time highs. You can look at this two ways; will people be more likely to use AFRM to pay over time, or will people slow their spending to the degree that AFRM will not be used by people who already are struggling to pay the bills they have today?
Other factors impacting AFRM's price include, days to cover shorts (only four days of avg volume), negative stats on returns and margins, etc. Yahoo Finance has all of this for you.
Shares Short (4/30/2024) 4 29.98M
Short Ratio (4/30/2024) 4 6.08
Short % of Float (4/30/2024) 4 14.41%
Short % of Shares Outstanding (4/30/2024) 4 9.72%
Shares Short (prior month 3/28/2024) 4 29.94M
The likelihood of a short squeeze rally is slim. And I'm buying PUT contracts in anticipation of further downside. As always, arguments to the contrary are welcome. Almost any and all feedback is helpful. Tell me, what do you think?